The truth about trading
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Thread: The truth about trading

  1. #1
    Well, its been some time since I posted anything . Been busy with work and also trading.

    I understand there are some greenhorn traders so I must talk about a couple of words to help with their eduion and confidence: the Truth about trading.

    1. You will not make any money from Forex unless you understand the structure of this market (why prices move) and the plogy behind everything. Does the price change and why this pattern is formed? Why a break is so powerful? What can pinbars inform us about market sentiment and exactly what the big boys are believing

    2. Once you understand the structure and also the plogy of people who constitute the market you will need to apply some money management egy to keep your growth (or psychologist ) consistent/controlled. You do not want to have 5 winning trades and one helleva failure that violates the bank.

    3. Trade by appearing on then daily maybe 4hr chart for now. The weekly and daily have their own patterns and patterns on this size are tough to break by time frames that are reduced. So its a fantastic idea with the bigger waves.

    4. IF your expectations are too high it will reflect on your account fairness. Trade as regular as u see fit. Its your cash
    upgraded: DONT AIM TO MAKE Xpercent per month. Just trade what you see. Being in the market in any way times might not be healthful. There are three places in the market: Long, Short, Out of trade (sidelines)

    5. There are a few solid trades each month. The ones that are A trades and God bless when u find them.

    6. Its okay to fear, although dont expect. REASON it OUT. In the event the market is running out of steam, do not expect and hope u gonna make more pips....GET from this transaction, at least partially. You are mistaken if you are incorrect. GET OUT. Regardless of that the market is gonna say guys, we made a mistake
    No, YOU made the mistake and must fix yourself by exiting the trade.

    7. In precisely the same breath, learn to live out your trades life. . .dont exit too fast WITHOUT A REASON. A fantastic question to ask yourself when thinking of departure is this: (if u were selling) ask yourself would you buy ? Why can you buy? If u find a reason to buy then you found a reason to exit your market trade. Reasons might be support/resistance place....or a price pattern forming that is contrary to your trade direction.

    8. Bear in mind that retail traders are only about 2-3percent of total trading volume (now I'm hearing 20 percent ). Others are institutional traders who trade for liquidity and some could care less where the price will probably be next week: some profit in the spread.

    You are only following a herd much bigger than yourself. You are trying to remain alive by not allowing the market run you .

  2. #2
    Quote Originally Posted by ;
    8. Bear in mind that retail traders are only about 2-3% of total trading volume. Others are institutional traders who trade for liquidity and some could care less where the price will be following week. You're simply following a herd bigger than yourself.
    I love to see the Wall Street Warriors series on Hulu.com, it's all fairly fluffy material, but in one of the episodes one of the higer up guys at FXCM asserts that the retail industry of this spot fx mkt is now around 20%.

    I don't know just how much truth there is to this, but you could hear it for yourself if you desire. Truly, it doesn't really matter in the day's end. As long as there are individuals trading, money will be made.

  3. #3
    Hi Mr demark,

    Great Article, I agree with you 100%. My comments follow:

    1. You won't earn any money from Forex unless you understand the architecture of the market (why prices go ) and also the plogy behind it all. Does the price change and the reason why this pattern is formed? Why a trend-line fracture is so powerful? What can pinbars inform us about market sentiment and exactly what the boys are thinking

    Yes, understanding what is moving the markets and is essential. I find it strange that many people on this forum ignore the fundamentals. I would add to your list here: What causes market turns? What do you take to alter the current trend? Etc

    This will help to discover new opportunities until they happen, then all you want to do is wait patiently for your signs and strike.

    2. As soon as you understand the architecture and also the plogy of people who make up the market you will need to apply some mone management egy to keep your expansion (or shrink) consistent/controlled. You don't wish to have 5 winning trades and one helleva loser that breaks the piggy bank.

    Yes, exactly but I would go so far as to say that a complete system not only lets you know when to enter and exit, but also includes money management as well as trade administration. As an example, you should know how much to risk at the entry of a trade but also when you should increase or lower your position.

    3. Trade by looking on weekly, then daily then 4hr chart. The weekly and daily have their own patterns and patterns on this magnitude are difficult to break by time frames that are lower. So its a good idea with the bigger waves.

    Yes, agree. I would say that it's important to understand that different time frames have different trends. In my view, any trader that is going to succeed needs to be aware of the principal long-term trends, no matter what time frame he/she's trading.

    5. There are a couple good solid trades each month. Those that are God and A trades bless when u find them.

    When you understand what's moving the markets and the plogy behind it, you will also recognize those rare chances until they happen where all the chances line up on your favor and you can risk somewhat longer to go for huge profits.

    6. Dont hope, but its okay to dread. REASON it OUT. In the event the market is running out of steam, don't hope and pray u gonna earn more pips....GET from this trade, at least partly. If you're incorrect, you're wrong. GET OUT. No way the market is gonna say guys, we made a mistake
    No, YOU made the mistake and must correct yourself by exiting the trade.

    Agreed, there should always be a strategy for entering and departing, if the trade does not respond the way you anticipated then of course you should get out.... Not expect.

    7. In precisely the exact same breath, learn how to live out your trades life. . .dont exit WITHOUT A REASON. A good question to ask yourself when thinking of departure is that: (if u were promoting ) ask yourself would you buy ? Why can you buy? If u find a reason to buy then you found a reason to exit your trade. Reasons may be support/resistance area....or a price pattern forming which is contrary to your trade direction.

    Yes, exactly. Other very good reasons might be that the fundamentals have changed, or that the current run has been running more statistically then preceding runs.

    8. Rememberthat retail traders are only about 2-3% of total trading volume. Others are institutional traders who trade for liquidity and some could care less where the price will probably be next week. You are simply following a herd much bigger than yourself.

    Yes, you're just a small fish in the big pond. This is the reason it's important to understand the plogy of these market movers. The advantage of being small is that we can enter trades at places without moving the market . Whenever possible we should exploit that advantage.

    Again, good post!

    -

  4. #4
    Due Razor

    I was thinking of forming a closed group for Currency Market traders where we place simply the very best trades and alert members by email. Reason for this is that we cant stare at the charts as we wish with a good amount of us appearing whenever we can then MAYBE we can pick up some transaction entrances.

    Just thinking still

  5. #5

  6. #6
    I guess that is your point of view in place of the fact of trading...

  7. #7
    Quote Originally Posted by ;
    I guess this is the point of view rather than the fact of trading....
    It is my point of view he believes his point of view is the fact of trading. That's the fact of my standpoint about his point of view. But, it is not necessarily the truth. The Reality Is that this really is my Perspective

  8. #8
    Ie would be agreed by me. 100% point of view only. Fritz


    Quote Originally Posted by ;
    I suppose this is your point of view rather than the truth of trading....

  9. #9
    Quote Originally Posted by ;
    Well, its been a while since I posted anything . Been busy with work and trading.

    I know there are a number of greenhorn traders therefore I must talk about a couple of words to help with their eduion and confidence: the Truth about trading.

    1. You won't earn any money from Forex unless you understand the structure of the market (why prices move) and also the plogy behind it all. Why does the price change and the reason why this pattern is formed? Why a trend-line fracture is so strong? What can pinbars tell us about market sentiment and exactly what the big boys ' are...
    Fantastic post..heard nothing like it before!!!! Where did you get that stuff from?

  10. #10
    Sorry Mr Denmark, but regrettably you dropped for of the reasons most on here will not make money.


    Erase all you've been educated and begin from scratch.


    PinBars are randomly formed due to the arbitory character of time sorry but there identical to 2 bars 1 closing in the base and 1 showing a high high the gap being the time variable ticked over while the price was in the base.


    Till you receive the fundamentals, cease preaching the appropriate manner, there are several means to suite many different men and women.

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